A report from the Tennessee Comptroller’s Office shows that while the state has paid off a significant amount of its debt, it still has a long way to go.
The "Indebtedness Report" documents the state’s credit rating along with how it manages money owed. It shows a nearly $65 million decrease in general obligation bonds.
However, another $1.8 billion in debt remains.
These bonds are typically used for government projects, grants to local boards and general economic development.
Tennessee has one of the lowest overall debt burdens in the country.
The state currently has a limit on the total amount it can borrow, measured in terms of its maximum annual debt service (the largest principal plus interest payment due in a year on all general obligation debt).
If that debt is greater than 10 percent of total state tax revenue, then no further bonds can be issued.
Comptroller’s office projections show about two-thirds of those obligations should be paid off within the next 10 years.
You can view the full report here.